You can configure http://localhost/myrepo to serve a repository from
anywhere, including /home/svn/repo, so isn't his text right?

For reference, folks, the [new] paragraph in question is:

<p>It'a also possible that you have an object in the web root
which has the same name as your repository URL. For example,
imagine your web server's document root is <tt>/var/www</tt>
and your Subversion repository is located at
<tt>/home/svn/repo</tt>. You then configure Apache to serve
the repository at <tt>http://localhost/myrepo</tt>. If you then
create the directory <tt>/var/www/myrepo/</tt> this will cause
a 301 error to occur.</p>

The scenario he describes is exactly a case of having "an object in
the web root which has the same name as your repository URL", no?

If you s|the repository|/home/svn/repo| in the third sentence, it all
becomes clearer, maybe.